Investment protector Just Dial IPO oversubscribed 1.94 times
23 May 2013
The initial public offering (IPO) of Indian search engine Just Dial was oversubscribed by 1.94 times on the last of the issue today.
The Rs 950-crore IPO is the biggest issue so far this year. It received bids for over 2.63 crore shares against 1.35 crore shares on offer, National Stock Exchange data showed.
The qualified institutional buyers category has been subscribed 89 per cent. The non-institutional investors portion showed a 1 per cent subscription. The individual investors category saw 70 per cent subscription.
The company had fixed the issue price band at Rs470-543. It will give a Rs47 discount to retail investors, which is 10 per cent on the floor price.
Just Dial is meant to provide a 'safety net' for retail investors. If the market value of the scrip falls below the issue price at any time during the scheme period, promoters will buy back shares at the sale price from allottees. However, the buyback will be subject to a maximum of 1,000 shares per allottee.
Founded by V S S Mani, the company started offering local search services in 1996 under the Justdial brand. It has now already raised Rs208 crore by issuing shares to anchor investors, including Goldman Sachs and HSBC.
Citigroup and Morgan Stanley are the book-running lead managers to the issue.
The company plans to list its shares on the Bombay Stock Exchange, the NSE and the MCX-SX.
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